WHY is IIUSA going on a publicity blitz and trying to mislead politicians and EB-5 visa investors with an inaccurate report?

I noticed that the IIUSA recently released a study about the economic impact and contribution of the EB-5 visa program. Nobody doubts that it has had a positive effect, but what IIUSA doesn't seem to be very candid about is the actual number of jobs. Commissioning a report filled with misleading information (and having an MBA in Accounting, I can say this quite confidently) and releasing it 2 years down the line has only 2 motives at this stage: To get more votes in order to prevent regional centers from being kicked out of the EB-5 visa program due to strong pressure from ICE, and to pre-emptively counteract the negative report that will soon be released by the GAO.

The fact is, the report was made up by folks whose core educational focus seems to be forest economics and agricultural economics (see link to check out their credentials http://www.alwardinstitute.org/index.php/about-us)

The "report" ESTIMATES that the SPENDING (and not investment) associated with EB-5 regional center investors contributed USD 3.58 BILLION to the US economy in 2013 and supported over 41,000 jobs. In my opinion, "economists" who actually had any integrity would have actually gone ahead and also clearly stated the actual number of jobs created, and just how much of the money was invested and how much was diverted as commission to overseas visa agents in China and other places. The fact that these "economists" failed to report that 12-25% of the investment is actually diverted elsewhere and not actually invested in a business shows that their research was not thorough.

An economist with integrity would have definitely reported on the low probability of getting a permanent green card if an EB-5 visa investor were to invest in a regional center as well as the almost certain prospect of seeing part if not all of the capital being lost due to investment in a regional center.

The report also seems to have been backdated, as it claims it was based on 2013 data, and I believe a review of USCIS data will reveal that in 2013, the number of regional centers was definitely below 600, contrary to what the IIUSA report claims.

When the report itself starts with inaccurate figures, it does not bode well for the rest of the report.

The reason ICE - HSI opposes regional center renewal in the EB-5 visa program  (which actually IS permanent) is that there is widespread money laundering and securities fraud committed by regional centers.

The reason USCIS FDNS opposes regional center renewal in the EB-5 visa program  (which actually IS permanent) is that there is widespread visa fraud committed by regional center investors.

The fact is, SEC actually advised EB-5 visa investors to avoid regional centers.

The fact is, even DHS chief Jeh Johnson acknowledged the rampant fraud and conflict of interest seen with regional centers.

EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses. Considering the fact that legislation is gridlocked in D.C. and due to existing and upcoming scandals as well as opposition by Jeh Johnson (head of the DHS), ICE-HSI and dozens of law enforcement agents, it is the opinion of legislative analysts that there is now NO chance of the Regional Centers being extended in the EB-5 visa program (see link at https://www.govtrack.us/congress/bills/114/hr616).

Since 2012, ICE has officially recommended banning regional centers from the EB-5 visa program and actually said "there can be no safeguards that can be put in place that will ensure the integrity of the regional center model." See link at http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf, and also see the Congressional debate at https://www.congress.gov/congressional-record/2013/12/19/senate-section/article/s9001-2  Even the SEC warns EB-5 visa investors to avoid regional centers. See link http://www.sec.gov/investor/alerts/ia_immigrant.htm

EB-5 visa investors need to remember that the ONLY safe way to get approved is through Genuine Direct Investment Businesses.

Here are some of the critical reasons that EB-5 visa investors should ALWAYS choose Genuine Direct Investment Businesses and avoid regional centers:

·         In a Genuine Direct Investment Business, it is quite unusual to encounter fraud or conflict of interest. This alone is THE biggest reason why EB-5 visa investors usually experience capital loss if they opt for regional centers or unsafe Direct Investments (such as Voodoo BBQ or Marcos Pizza), while those who opt for Genuine Direct Investment Businesses usually NEVER experience capital loss.

·         EB-5 visa investors who choose Genuine Direct Investment Businesses usually earn annual ROI of 15% to 40%, while those who select regional centers usually earn 0-2% annual ROI.
Genuine Direct Investment Businesses offer easy exit strategies to EB-5 visa investors while those who invest in regional centers experience TERRIBLE exit strategies. 

·         Regional Centers usually commit securities fraud and securities law violations while this is usually unheard of in Genuine Direct Investment Businesses. 

·         EB-5 visa investors usually get capital gains if they invest in a Genuine Direct Investment Business and almost NEVER get capital gains if they invest in a regional center. 

·         EB-5 visa investors in Genuine Direct Investment Businesses usually see faster processing and approval of their petitions, while it takes much longer for EB-5 visa investors to get their immigrant visa through regional centers. 

·         EB-5 visa investors in Genuine Direct Investment Businesses have a higher chance of getting their permanent green card, while those who opt for regional centers have a lower chance of getting their green card. 

If you are a business owner or high net worth individual interested in migrating to the US, please contact us for a free consultation. We offer a turnkey solution and have a 100% fee refund guarantee if a client is denied due to our fault.

Mohammed Shaikh, MBA (Accounting), CFE, Licensed Business & RE Broker (CA & FL)
Online: http://www.smartbusinessbroker.com Phone: +1 407 535 0616